CervoMed (CRVO) 10-Q 13 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 10, 2017
Document Information [Line Items]
Entity Registrant Name	Diffusion Pharmaceuticals Inc.
Entity Central Index Key	1,053,691
Trading Symbol	dffn
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		14,521,730
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,216,000	$ 1,552,852
Certificate of deposit	10,020,164
Prepaid expenses, deposits and other current assets	1,004,361	50,844
Total current assets	12,240,525	1,603,696
Property and equipment, net	479,647	79,755
Intangible asset	8,639,000	8,639,000
Goodwill	6,929,258	6,929,258
Other assets	38,813	232,675
Total assets	28,327,243	17,484,384
Current liabilities:
Current portion of convertible debt	550,000	1,880,000
Accounts payable	409,423	1,684,158
Accrued expenses and other current liabilities	1,415,707	874,264
Common stock warrant liability	16,316,054
Total current liabilities	18,691,184	4,438,422
Convertible debt, net of current portion		550,000
Deferred income taxes	3,279,363	3,279,363
Other liabilities		31,915
Total liabilities	21,970,547	8,299,700
Commitments and Contingencies
Convertible preferred stock, $0.001 par value: Series A - 13,750,000 shares authorized, 12,376,329 and 8,324,032 shares issued and outstanding, respectively at September 30, 2017; No shares authorized, issued or outstanding at December 31, 2016 (liquidation value of $16,814,360 at September 30, 2017)	0	0
Stockholders’ Equity:
Common stock, $0.001 par value: 1,000,000,000 shares authorized; 14,503,976 and 10,345,637 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	14,504	10,346
Additional paid-in capital	69,686,744	69,363,575
Accumulated deficit	(63,344,552)	(60,189,237)
Total stockholders' equity	6,356,696	9,184,684
Total liabilities, convertible preferred stock and stockholders' equity	$ 28,327,243	$ 17,484,384

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0
Preferred stock, shares authorized (in shares)	13,750,000	0
Preferred stock, shares issued (in shares)	12,376,329	0
Preferred stock, shares outstanding (in shares)	8,324,032	0
Preferred stock, liquidation value	$ 16,814,360	$ 0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	14,503,976	10,345,637
Common stock, shares outstanding (in shares)	14,503,976	10,345,637

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Operating expenses:
Research and development	$ 1,759,305	$ 1,941,743	$ 3,946,420	$ 5,739,456
General and administrative	1,559,399	3,852,406	4,908,424	10,070,878
Depreciation	27,374	5,822	39,767	19,520
Loss from operations	3,346,078	5,799,971	8,894,611	15,829,854
Other expense (income):
Interest (income) expense, net	(1,318)	1,378	73,290	854
Change in fair value of warrant liability (Note 11)	(8,441,616)		(18,909,792)
Warrant related expenses (Note 8)			10,225,846
Other financing expenses			2,870,226
Income (loss) from operations before income tax benefit	5,096,856	(5,801,349)	(3,154,181)	(15,830,708)
Income tax benefit		(364,796)		(364,796)
Net income (loss)	$ 5,096,856	$ (5,436,553)	$ (3,154,181)	$ (15,465,912)
Per share information:
Net income (loss) per share of common stock, basic (in dollars per share)	$ 0.21	$ (0.53)	$ (0.35)	$ (1.52)
Net income (loss) per share of common stock, diluted (in dollars per share)	$ 0.20	$ (0.53)	$ (1.83)	$ (1.52)
Weighted average shares outstanding, basic (in shares)	13,937,869	10,333,898	11,709,128	10,198,491
Weighted average shares outstanding, diluted (in shares)	14,714,853	10,333,898	12,525,707	10,198,491

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Changes in Convertible Preferred Stock and Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($)		Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Preferred Stock [Member]Series A Preferred Stock [Member]	Series A Preferred Stock [Member]	Total
Balance (in shares) at Dec. 31, 2016		10,345,637
Balance at Dec. 31, 2016		$ 10,346	$ 69,363,575	$ (60,189,237)			$ 9,184,684
Sale of Series A convertible preferred stock and common stock warrants (in shares)		88,436			12,376,329
Common stock issued for advisory services (in shares)		17,606
Common stock issued for advisory services		$ 18	49,982				50,000
Series A cumulative preferred dividend			(912,946)			$ (912,946)	(912,946)
Reclassification of accrued dividends upon conversion of Series A		$ 88	187,084			$ 200,000	187,172
Conversion of Series A convertible preferred stock to common stock (in shares)		4,052,297			(4,052,297)	88,436
Conversion of Series A convertible preferred stock to common stock		$ 4,052	(4,052)
Beneficial conversion feature for accrued interest of convertible debt			28,017				28,017
Stock-based compensation expense			973,950				973,950
Net loss				(3,154,181)			(3,154,181)
Balance (in shares) at Sep. 30, 2017		14,503,976			8,324,032
Balance at Sep. 30, 2017		$ 14,504	69,686,744	(63,344,552)			$ 6,356,696
Cumulative effect of change in accounting principle(a)	[1]		$ 1,134	$ (1,134)
[1]	In 2017, the Company adopted provisions of ASU 2016-09, Improvements to Employee Share Based Payment Accounting, resulting in a cumulative effect adjustment to Accumulated Deficit and Additional Paid-in Capital for previously unrecognized stock-based compensation expense. See Note 3 for further discussion of the impacts of this standard.

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities:
Net loss	$ (3,154,181)	$ (15,465,912)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	39,767	19,520
Loss on sale or disposal of assets		6,761
Stock-based compensation expense	973,950	1,121,990
Common stock issued for advisory services	50,000	1,409,363
Warrant related expense, change in fair value, and other financing expenses	(5,813,720)
Abandonment of in-process research and development intangible asset		951,000
Change in deferred income taxes		(364,796)
Settlement of litigation matter		2,500,000
Non-cash interest expense, net	11,967	7,067
Changes in operating assets and liabilities:
Prepaid expenses, deposits and other assets	(661,675)	50,918
Accounts payable, accrued expenses and other liabilities	(1,496,150)	410,014
Net cash used in operating activities	(10,050,042)	(9,354,075)
Cash flows (used in) provided by investing activities:
Purchases of property and equipment	(438,604)	(2,331)
Purchase of certificate of deposit	(10,000,000)
Cash received in reverse merger transaction		8,500,602
Net cash (used in) provided by investing activities	(10,438,604)	8,498,271
Cash flows provided by financing activities:
Proceeds from the sale of Series A convertible preferred stock and warrants, net	22,129,774
Payment of offering costs for Series B	(97,980)
Repayment of convertible debt	(1,880,000)
Proceeds from the issuance of convertible debt		1,880,000
Net cash provided by financing activities	20,151,794	1,880,000
Net (decrease) increase in cash and cash equivalents	(336,852)	1,024,196
Cash and cash equivalents at beginning of period	1,552,852	1,997,192
Cash and cash equivalents at end of period	1,216,000	3,021,388
Supplemental disclosure of cash flow information:
Cash paid for interest	112,800
Supplemental disclosure of non-cash investing and financing activities:
Series A cumulative preferred dividends	(912,946)
Conversion of accrued dividends related to convertible preferred stock	187,172
Conversion of convertible notes and related accrued interest into common stock		711,495
Consideration in connection with RestorGenex Corporation merger transaction		21,261,000
Series A Preferred Stock [Member]
Supplemental disclosure of non-cash investing and financing activities:
Series A cumulative preferred dividends	(912,946)
Conversion of accrued dividends related to convertible preferred stock	200,000
Convertible Preferred Stock [Member]
Supplemental disclosure of non-cash investing and financing activities:
Conversion of accrued dividends related to convertible preferred stock	$ 187,172

Note 1 - Organization and Descr

Note 1 - Organization and Description of Business	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Nature of Operations [Text Block]	1. Organization and Description of Business Diffusion Pharmaceuticals Inc. (“Diffusion” or the “Company”), a Delaware corporation, is a clinical stage biotechnology company focused on extending the life expectancy of cancer patients by improving the effectiveness of current standard-of-care treatments, including radiation therapy and chemotherapy. The Company is developing its lead product candidate, trans sodium crocetinate (“TSC”) for use in many cancer types in which tumor oxygen deprivation ("hypoxia") is known to diminish the effectiveness of current treatments. TSC is designed to target the cancer ’s hypoxic micro-environment, re-oxygenating treatment-resistant tissue and making the cancer cells more susceptible to the therapeutic effects of standard-of-care radiation therapy and chemotherapy. The U.S. Food and Drug Administration (“FDA”) provided Diffusion with final protocol guidance for a Phase 3 2017. On January 8, 2016, ’s consolidated financial statements from the date of acquisition. Accordingly, all comparative period information presented in these unaudited condensed consolidated financial statements from January 1, 2016 January 7, 2016

Note 2 - Liquidity

Note 2 - Liquidity	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Substantial Doubt about Going Concern [Text Block]	2. Liquidity The Company has not No ’s research and development efforts will be successful. The Company regularly explores alternative means of financing its operations and seeks funding through various sources, including public and private securities offerings, collaborative arrangements with third March 2017, $25.0 one one 12,376,329 $22.1 $2.9 1,179,558 The Company currently does not may third may not On May 26, 2017, ASDAQ not 5550 2 ’s listed securities had been below $35.0 30 ASDAQ not 5550 1 $2.5 5550 3 two three 12 The Company has prepared its financial statements assuming that it will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses since inception and it expects to generate losses from operations for the foreseeable future primarily due to research and development costs for its potential product candidates, which raises substantial doubt about the Company’s ability to continue as a going concern. Various internal and external factors will affect whether and when the Company’s product candidates become approved drugs and the extent of their market share. The regulatory approval and market acceptance of the Company’s proposed future products (if any), length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage of the drug approval process will materially affect the Company’s financial condition and future operations. The Company believes its cash and cash equivalents and certificate of deposit at September 30, 2017 June 2018.

Note 3 - Basis of Presentation

Note 3 - Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Significant Accounting Policies [Text Block]	3. Basis of Presentation and Summary of Significant Accounting Policies The Summary of Significant Accounting Policies included in the Company's Form 10 December 31, 2016, March 31, 2017 not Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as found in the Accounting Standard Codification (“ASC”) and Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”), and with the instructions to Form 10 10 X September 30, 2017, three nine September 30, 2017 2016 nine September 30, 2017 2016. nine September 30, 2017 not may December 31, 2017. not December 31, 2016 10 March 31, 2017. Use of Estimates The preparation of the unaudited interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date the financial statements and reported amounts of expense during the reporting period. Actual results could differ from those estimates. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the unaudited condensed consolidated financial statements, actual results may Cash and Cash Equivalents and Certificate of Deposit The Company considers any highly liquid investments, such as money market funds, with an original maturity of three three one Fair Value of Financial Instruments The carrying amounts of the Company ’s financial instruments, including cash equivalents, certificate of deposit, accounts payable, and accrued expenses approximate fair value due to the short-term nature of those instruments. As of September 30, 2017, $0.5 December 31, 2016, 2016 $2.0 $0.6 2016 three September 30, 2017. 3 Offering Costs Offering costs are either expensed upon completion or abandonment of the related financing or offset against the proceeds of the offering, depending upon the accounting treatment of the offering. Offering costs consist principally of legal costs incurred through the balance sheet date related to the Company ’s private placement financings and are recognized in other assets on the consolidated balance sheet. During the three September 30, 2017, not May 1, 2017, $98,000 Intangible Assets and Goodwill In connection with the Merger, the Company acquired indefinite-lived In-Process Research and Development Assets (“IPR&D”) RES- 529 440, $8.6 $1.0 $6.9 third 2016, 440 $0. 529 October 1 ’s fiscal year or more frequently if impairment indicators exist. The Company has a single reporting unit and all goodwill relates to that reporting unit. There were no 529 three nine September 30, 2017. Net Income (Loss) Per Common Share For the three nine September 30, 2017, two may not no For purposes of calculating diluted loss per common share, the denominator includes both the weighted average common shares outstanding and the number of common stock equivalents if the inclusion of such common stock equivalents would be dilutive. Dilutive common stock equivalents potentially include stock options, unvested restricted stock awards and warrants using the treasury stock method. The Company considers the potential dilutive impact of its convertible debt instruments using the "if-converted" method. In addition, the Company considers the potential dilutive impact of its convertible preferred shares using the “if-converted” method if more dilutive than the two two three September 30, 2017. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Basic net income (loss) per common share calculation: Net income (loss) $ 5,096,856 $ (5,436,553 ) $ (3,154,181 ) $ (15,465,912 ) Accretion of Series A cumulative preferred dividends (366,641 ) — (912,946 ) — Undistributed earnings to participating securities (1,838,354 ) — — — Net income (loss) attributable to common stockholders $ 2,891,861 $ (5,436,553 ) $ (4,067,127 ) $ (15,465,912 ) Weighted average shares outstanding, basic 13,937,869 10,333,898 11,709,128 10,198,491 Net income (loss) per share of common, basic $ 0.21 $ (0.53 ) $ (0.35 ) $ (1.52 ) Diluted net income (loss) per common share calculation: Net income (loss) attributable to common stockholders 2,891,861 (5,436,553 ) (4,067,127 ) (15,465,912 ) Change in fair value of warrant liability — — (18,909,792 ) Interest on convertible debt 28,891 — — — Diluted net loss 2,920,752 (5,436,553 ) (22,976,919 ) (15,465,912 ) Weighted average common shares outstanding, basic 13,937,869 10,333,898 11,709,128 10,198,491 Common stock equivalents arising from stock options 20,608 — — — Common stock equivalents arising from warrants — — 816,579 — Common stock equivalents arising from convertible debt 756,376 — — — Common stock equivalents 14,714,853 10,333,898 12,525,707 10,198,491 Net income (loss) per share of common stock, diluted $ 0.20 $ (0.53 ) $ (1.83 ) $ (1.52 ) The following potentially dilutive securities outstanding as of September 30, 2017 2016 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Convertible debt — 749,280 213,879 749,280 Common stock warrants 14,003,608 460,721 447,721 460,721 Stock options 2,521,605 2,010,409 2,545,989 2,010,409 Unvested restricted stock awards 4,599 10,738 4,599 10,738 16,529,812 3,231,148 3,212,188 3,231,148 Amounts in the table reflect the common stock equivalents of the noted instruments. Recent Accounting Pronouncements In July 2017, 2017 11, Earnings Per Share (Topic 260 480 815 first second December 15, 2018 In May 2017, No. 2017 09, Modification Accounting for Share-Based Payment Arrangements 718. not December 15, 2017 not In March 2016, 2016 09, Compensation – Improvements to Employee Share-Based Payment Accounting December 15, 2016 2017 2016 09, $1,000 January 1, 2017. In February 2016, 2016 02, Leases (Topic 842 December 15, 2018,

Note 4 - Acquisition

Note 4 - Acquisition	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Business Combination Disclosure [Text Block]	4. Acquisition Reverse Merger with RestorGenex On January 8, 2016, The purchase price was calculated as follows: Fair value of RestorGenex shares outstanding $ 19,546,000 Estimated fair value of RestorGenex stock options outstanding 1,321,000 Estimated fair value of RestorGenex warrants outstanding 384,000 CVRs – RES-440 product candidate 10,000 Total purchase price $ 21,261,000 The Merger transaction has been accounted for using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The valuation technique utilized to value the IPR&D was the cost approach. The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date: Cash and cash equivalents $ 8,500,602 Prepaid expenses and other assets 195,200 Property and equipment 57,531 Intangible assets 9,600,000 Goodwill 6,929,258 Accrued liabilities (377,432 ) Deferred tax liability (3,644,159 ) Net assets acquired $ 21,261,000 Qualitative factors supporting the recognition of goodwill due to the Merger transaction include the Company’s anticipated enhanced ability to secure additional capital and gain access to capital market opportunities as a public company and the potential value created by having a more well-rounded clinical development portfolio by adding the earlier stage products acquired in the reverse merger transaction to the Company’s later stage product portfolio. The goodwill is not Pro Forma Financial Information (Unaudited) The following pro forma financial information reflects the condensed consolidated results of operations of the Company as if the acquisition of RestorGenex had taken place on January 1, 2016. not Nine Months Ended September 30, 2016 Net revenues $ — Net loss (13,900,691 ) Basic and diluted loss per share $ (1.36 ) Non-recurring pro forma transaction costs directly attributable to the Merger were $1.6 nine September 30, 2016 nine September 30, 2016 $1.1 46,000 $0.5 January 8, 2016. $3.0 $2.7 nine September 30, 2016. No three nine September 30, 2017 three September 30, 2016.

Note 5 - Prepaid Expenses, Depo

Note 5 - Prepaid Expenses, Deposits and Other Current Assets	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Prepaid Expenses, Deposits and Other Current Assets [Text Block]	5. Prepaid expenses, deposits and other current assets Prepaid expenses, deposits and other current assets consisted of the following: September 30, 2017 December 31, 2016 Prepaid research and development expense $ 844,521 $ 12,725 Prepaid insurance expense 126,733 9,731 Prepaid other 33,107 28,388 Total $ 1,004,361 $ 50,844

Note 6 - Other Accrued Expenses

Note 6 - Other Accrued Expenses and Liabilities	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]	6. Other Accrued Expenses and Liabilities Other accrued expenses and liabilities consisted of the following: September 30, 2017 December 31, 2016 Accrued interest payable $ 36,029 $ 29,359 Accrued Series A dividends 725,774 — Accrued payroll and payroll related expenses 398,859 399,740 Accrued professional fees 114,268 72,855 Accrued clinical studies expenses 88,175 220,978 Other accrued expenses 52,602 151,332 Total $ 1,415,707 $ 874,264

Note 7 - Convertible Debt

Note 7 - Convertible Debt	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Debt Disclosure [Text Block]	7. Convertible Debt The components of debt outstanding at September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 2016 Convertible notes $ — $ 1,880,000 Series B convertible notes 550,000 550,000 550,000 2,430,000 Less current portion (550,000 ) (1,880,000 ) Long-term debt, net of current portion $ — $ 550,000 Upon maturity of the 2016 third 2017, $1.9 $0.1 September 30, 2017, $36,000.

Note 8 - Convertible Preferred

Note 8 - Convertible Preferred Stock and Common Stock Warrants	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	8. Convertible Preferred Stock and Common Stock Warrants In contemplation of completing the private placement described below, the Company amended and restated its articles of incorporation and authorized 13,750,000 ’ equity because the shares contain deemed liquidation rights that are contingent redemption features not Series A Convertible Preferred Stock Transaction In March 2017, $25.0 one ’s Series A convertible preferred stock and a warrant to purchase one 8.0% may, one $2.02 one $2.22, fifth The Company sold 12,376,329 $22.1 $2.9 1,179,558 $2.22 fifth During its evaluation of equity classification for the common stock warrants, the Company considered the conditions as prescribed within ASC 815 40, Derivatives and Hedging, Contracts in an Entity’s own Equity 815 40” 815 40 not no As the fair value of the warrants upon issuance was in excess of the proceeds of the Series A offering, there are no $10.2 nine September 30, 2017. Dividends The Company shall pay a cumulative preferential dividend on each share of the Series A convertible preferred stock outstanding at a rate of 8.0% April 1 October 1 October 1, 2017. not $0.4 $0.9 three nine September 30, 2017. Voting Subject to certain preferred stock class votes specified in the Certificate of Designation of Preferences, Rights and Limitations of the Series A Convertible Preferred Stock (the “Certificate of Designation”) or as required by law, the holders of the Series A convertible preferred stock votes together with the holders of common stock as a single class on an adjusted as-converted basis. In accordance with N ASDAQ ASDAQ March 14, 2017 0.84874 March 31, 2017 0.50627 Liquidation Preference The Series A convertible preferred stock is senior to the common stock. In the event of a liquidation, dissolution or winding up of the Company, either voluntary or involuntary, or in the event of a deemed liquidation event, which includes a sale of the Company as defined in the Certificate of Designation, the holders of the Series A convertible preferred stock shall be entitled to receive their original investment amount. If upon the occurrence of such event, the assets and funds available for distribution are insufficient to pay such holders the full amount to which they are entitled, then the entire remaining assets and funds legally available for distribution shall be distributed ratably among the holders of the Series A convertible preferred stock in proportion to the full amounts to which they would otherwise be entitled. Conversion The Series A convertible preferred stock is convertible, at the holder ’s option, into common stock. At the Company’s option, the Series A convertible preferred stock can be converted into common stock upon (a) the thirty $8.00 $10.0 Upon any conversion, any unpaid dividends shall be payable to the holders of Series A convertible preferred stock. During the three nine September 30, 2017, 2,125,306 4,052,297 three nine September 30, 2017, $0.1 $0.2 62,701 88,436 Make-Whole Provision Until March 2020 $10.0 $2.02 105% not Common Stock Warrants As of September 30, 2017, Outstanding Range of exercise price per share Common stock warrants issued prior to Merger 447,721 $20.00 - $750.00 Common stock warrants issued in Series A 13,555,887 $2.22 14,003,608 During the nine September 30, 2017, 13,000 2019. March 2017 March 2022. three nine September 30, 2017, $8.4 $5.8

Note 9 - Stock-based Compensati

Note 9 - Stock-based Compensation	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	9. Stock-Based Compensation 2015 The Diffusion Pharmaceuticals Inc. 2015 "2015 January 1, 4.0% ’s common stock outstanding as of the immediately preceding December 31, 413,825 January 1, 2017, may 2015 September 30, 2017, 114,291 2015 The Company recorded stock-based compensation expense in the following expense categories of its unaudited interim condensed consolidated statements of operations for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Research and development $ 14,333 $ 174,932 $ 81,737 $ 601,260 General and administrative 278,168 215,425 892,213 520,730 Total stock-based compensation expense $ 292,501 $ 390,357 $ 973,950 $ 1,121,990 The following table summarizes the activity related to all stock option grants to employees and non-employees for the nine September 30, 2017: Number of Options Weighted average exercise price per share Weighted average remaining contractual life (in years) Balance at January 1, 2017 2,207,409 $ 8.09 Granted 340,041 2.49 Expired (1,461 ) 15.00 Outstanding at September 30, 2017 2,545,989 $ 7.34 7.37 Exercisable at September 30, 2017 1,746,809 $ 8.51 6.62 Non-employee Stock Options Non-employee options are remeasured to fair value each period using a Black-Scholes option-pricing model until the options vest. During the nine September 30, 2017, 9,394 three September 30, 2017 2016 $7,000 $0.2 nine September 30, 2017 2016 $83,000 $0.7 September 30, 2017, 18,572 $26,000 1.64 Employee Stock Options During the nine September 30, 2017, 330,647 $2.12 nine September 30, 2017. three September 30, 2017 2016 $0.3 $0.1 nine September 30, 2017 2016, $0.9 $0.4 No September 30, 2017, $2.8 5.33 Options granted were valued using the Black-Scholes model and the weighted average assumptions used to value the options granted during the first nine 2017 Expected term (in years) 6.03 Risk-free interest rate 2.0 % Expected volatility 114.9 % Dividend yield — % Restricted Stock Awards As of September 30, 2017, 4,599 three September 30, 2017 2016, 1,533 1,534 $3,000 $3,000, nine September 30, 2017 2016, 4,599 4,603 $9,000 $9,000, September 30, 2017, $9,000 1.0

Note 10 - Commitments and Conti

Note 10 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	10. Commitments and Contingencies Office Space Lease Commitment The Company leases office and laboratory facilities in Charlottesville, Virginia. On March 31, 2017, nine September 30, 2017, $0.4 three September 30, 2017 2016 $28,000 $34,000, nine September 30, 2017 2016 $80,000 $115,000, May 1, 2017 April 30, 2022. not September 30, 2017 Rental Commitments 2017 $ 27,746 2018 112,354 2019 114,409 2020 116,464 2021 118,519 Thereafter 58,232 Total $ 547,724 Arrangement with Clinical Research Organization On July 5, 2017, $0.6 three September 30, 2017. September 30, 2017, $1.0 fourth 2017. Legal Proceedings On August 7, 2014, ’s former Chief Executive Officer under the caption Paul Feller v. RestorGenex Corporation, Pro Sports & Entertainment, Inc., ProElite, Inc. and Stratus Media Group, GmbH No. BC553996 December 30, 2014, April 1, 2015, April 14, 2015, January 8, 2016, No may

Note 11 - Fair Value Measuremen

Note 11 - Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Fair Value Disclosures [Text Block]	11. Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one three first two • Level 1—Quoted • Level 2—Observable 1 not • Level 3—Unobservable no The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Accordingly, transfers between levels within the valuation hierarchy occur when there are significant changes to the inputs, such as increases or decreases in market activity, changes to the availability of current prices, changes to the transparency to underlying inputs, and whether there are significant variances in quoted prices. Transfers in and/or out of any level are assumed to occur at the end of the period. The following table presents the Company ’s assets and liabilities that are measured at fair value on a recurring basis: September 30, 2017 (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 1,216,000 $ — $ — Certificate of deposit $ 10,020,164 Liabilities Common stock warrant liability $ — $ — $ 16,316,054 December 31, 2016 (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 1,552,852 $ — $ — The reconciliation of the common stock warrant liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3 Common Stock Warrant Liability Balance at December 31, 2016 $ — Issued in connection with the Series A convertible preferred stock 35,225,846 Change in fair value (18,909,792 ) Balance at September 30, 2017 $ 16,316,054 The common stock warrants issued in connection with the Series A convertible preferred stock are classified as liabilities on the accompanying balance sheet at September 30, 2017. September 30, 2017 Stock price $ 1.66 Exercise price $ 2.22 Expected term (in years) 4.5 Risk-free interest rate 1.8 % Expected volatility 109.3 % Dividend yield —

Note 12 - Subsequent Events

Note 12 - Subsequent Events	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	12. Subsequent events On November 1, 2017 March 31, 2017 June 30, 2017, It is therefore the belief of the Company that this fundamental change will allow the Company to regain its N ASDAQ September 30, 2017 $16.3 September 30, 2017 $13.2 November 1, 2017 September 30, 2017 November 1, 2017 $3.2 As of September 30, 2017 Actual Adjustments Pro-forma Total assets $ 28,327,243 $ — $ 28,327,243 Total liabilities 21,970,547 (16,316,054 ) (i) 5,654,493 Convertible preferred stock — — — Stockholders' equity Common stock 14,504 — 14,504 Additional paid-in-capital 69,686,744 13,153,524 (ii) 82,840,268 Accumulated deficit (63,344,552 ) 3,162,530 (iii) (60,182,022 ) Total stockholders' equity 6,356,696 16,316,054 22,672,750 Total liabilities, convertible preferred stock and stockholders' equity $ 28,327,243 $ — $ 28,327,243

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as found in the Accounting Standard Codification (“ASC”) and Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”), and with the instructions to Form 10 10 X September 30, 2017, three nine September 30, 2017 2016 nine September 30, 2017 2016. nine September 30, 2017 not may December 31, 2017. not December 31, 2016 10 March 31, 2017.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of the unaudited interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date the financial statements and reported amounts of expense during the reporting period. Actual results could differ from those estimates. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the unaudited condensed consolidated financial statements, actual results may
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents and Certificate of Deposit The Company considers any highly liquid investments, such as money market funds, with an original maturity of three three one
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments The carrying amounts of the Company ’s financial instruments, including cash equivalents, certificate of deposit, accounts payable, and accrued expenses approximate fair value due to the short-term nature of those instruments. As of September 30, 2017, $0.5 December 31, 2016, 2016 $2.0 $0.6 2016 three September 30, 2017. 3
Offering Costs, Policy [Policy Text Block]	Offering Costs Offering costs are either expensed upon completion or abandonment of the related financing or offset against the proceeds of the offering, depending upon the accounting treatment of the offering. Offering costs consist principally of legal costs incurred through the balance sheet date related to the Company ’s private placement financings and are recognized in other assets on the consolidated balance sheet. During the three September 30, 2017, not May 1, 2017, $98,000
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]	Intangible Assets and Goodwill In connection with the Merger, the Company acquired indefinite-lived In-Process Research and Development Assets (“IPR&D”) RES- 529 440, $8.6 $1.0 $6.9 third 2016, 440 $0. 529 October 1 ’s fiscal year or more frequently if impairment indicators exist. The Company has a single reporting unit and all goodwill relates to that reporting unit. There were no 529 three nine September 30, 2017.
Earnings Per Share, Policy [Policy Text Block]	Net Income (Loss) Per Common Share For the three nine September 30, 2017, two may not no For purposes of calculating diluted loss per common share, the denominator includes both the weighted average common shares outstanding and the number of common stock equivalents if the inclusion of such common stock equivalents would be dilutive. Dilutive common stock equivalents potentially include stock options, unvested restricted stock awards and warrants using the treasury stock method. The Company considers the potential dilutive impact of its convertible debt instruments using the "if-converted" method. In addition, the Company considers the potential dilutive impact of its convertible preferred shares using the “if-converted” method if more dilutive than the two two three September 30, 2017. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Basic net income (loss) per common share calculation: Net income (loss) $ 5,096,856 $ (5,436,553 ) $ (3,154,181 ) $ (15,465,912 ) Accretion of Series A cumulative preferred dividends (366,641 ) — (912,946 ) — Undistributed earnings to participating securities (1,838,354 ) — — — Net income (loss) attributable to common stockholders $ 2,891,861 $ (5,436,553 ) $ (4,067,127 ) $ (15,465,912 ) Weighted average shares outstanding, basic 13,937,869 10,333,898 11,709,128 10,198,491 Net income (loss) per share of common, basic $ 0.21 $ (0.53 ) $ (0.35 ) $ (1.52 ) Diluted net income (loss) per common share calculation: Net income (loss) attributable to common stockholders 2,891,861 (5,436,553 ) (4,067,127 ) (15,465,912 ) Change in fair value of warrant liability — — (18,909,792 ) Interest on convertible debt 28,891 — — — Diluted net loss 2,920,752 (5,436,553 ) (22,976,919 ) (15,465,912 ) Weighted average common shares outstanding, basic 13,937,869 10,333,898 11,709,128 10,198,491 Common stock equivalents arising from stock options 20,608 — — — Common stock equivalents arising from warrants — — 816,579 — Common stock equivalents arising from convertible debt 756,376 — — — Common stock equivalents 14,714,853 10,333,898 12,525,707 10,198,491 Net income (loss) per share of common stock, diluted $ 0.20 $ (0.53 ) $ (1.83 ) $ (1.52 ) The following potentially dilutive securities outstanding as of September 30, 2017 2016 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Convertible debt — 749,280 213,879 749,280 Common stock warrants 14,003,608 460,721 447,721 460,721 Stock options 2,521,605 2,010,409 2,545,989 2,010,409 Unvested restricted stock awards 4,599 10,738 4,599 10,738 16,529,812 3,231,148 3,212,188 3,231,148 Amounts in the table reflect the common stock equivalents of the noted instruments.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In July 2017, 2017 11, Earnings Per Share (Topic 260 480 815 first second December 15, 2018 In May 2017, No. 2017 09, Modification Accounting for Share-Based Payment Arrangements 718. not December 15, 2017 not In March 2016, 2016 09, Compensation – Improvements to Employee Share-Based Payment Accounting December 15, 2016 2017 2016 09, $1,000 January 1, 2017. In February 2016, 2016 02, Leases (Topic 842 December 15, 2018,

Note 3 - Basis of Presentatio20

Note 3 - Basis of Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Basic net income (loss) per common share calculation: Net income (loss) $ 5,096,856 $ (5,436,553 ) $ (3,154,181 ) $ (15,465,912 ) Accretion of Series A cumulative preferred dividends (366,641 ) — (912,946 ) — Undistributed earnings to participating securities (1,838,354 ) — — — Net income (loss) attributable to common stockholders $ 2,891,861 $ (5,436,553 ) $ (4,067,127 ) $ (15,465,912 ) Weighted average shares outstanding, basic 13,937,869 10,333,898 11,709,128 10,198,491 Net income (loss) per share of common, basic $ 0.21 $ (0.53 ) $ (0.35 ) $ (1.52 ) Diluted net income (loss) per common share calculation: Net income (loss) attributable to common stockholders 2,891,861 (5,436,553 ) (4,067,127 ) (15,465,912 ) Change in fair value of warrant liability — — (18,909,792 ) Interest on convertible debt 28,891 — — — Diluted net loss 2,920,752 (5,436,553 ) (22,976,919 ) (15,465,912 ) Weighted average common shares outstanding, basic 13,937,869 10,333,898 11,709,128 10,198,491 Common stock equivalents arising from stock options 20,608 — — — Common stock equivalents arising from warrants — — 816,579 — Common stock equivalents arising from convertible debt 756,376 — — — Common stock equivalents 14,714,853 10,333,898 12,525,707 10,198,491 Net income (loss) per share of common stock, diluted $ 0.20 $ (0.53 ) $ (1.83 ) $ (1.52 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Convertible debt — 749,280 213,879 749,280 Common stock warrants 14,003,608 460,721 447,721 460,721 Stock options 2,521,605 2,010,409 2,545,989 2,010,409 Unvested restricted stock awards 4,599 10,738 4,599 10,738 16,529,812 3,231,148 3,212,188 3,231,148

Note 4 - Acquisition (Tables)

Note 4 - Acquisition (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Business Combination, Preliminary Purchase Price Consideration [Table Text Block]	Fair value of RestorGenex shares outstanding $ 19,546,000 Estimated fair value of RestorGenex stock options outstanding 1,321,000 Estimated fair value of RestorGenex warrants outstanding 384,000 CVRs – RES-440 product candidate 10,000 Total purchase price $ 21,261,000
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	Cash and cash equivalents $ 8,500,602 Prepaid expenses and other assets 195,200 Property and equipment 57,531 Intangible assets 9,600,000 Goodwill 6,929,258 Accrued liabilities (377,432 ) Deferred tax liability (3,644,159 ) Net assets acquired $ 21,261,000
Business Acquisition, Pro Forma Information [Table Text Block]	Nine Months Ended September 30, 2016 Net revenues $ — Net loss (13,900,691 ) Basic and diluted loss per share $ (1.36 )

Note 5 - Prepaid Expenses, De22

Note 5 - Prepaid Expenses, Deposits and Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]	September 30, 2017 December 31, 2016 Prepaid research and development expense $ 844,521 $ 12,725 Prepaid insurance expense 126,733 9,731 Prepaid other 33,107 28,388 Total $ 1,004,361 $ 50,844

Note 6 - Other Accrued Expens23

Note 6 - Other Accrued Expenses and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Other Current Liabilities [Table Text Block]	September 30, 2017 December 31, 2016 Accrued interest payable $ 36,029 $ 29,359 Accrued Series A dividends 725,774 — Accrued payroll and payroll related expenses 398,859 399,740 Accrued professional fees 114,268 72,855 Accrued clinical studies expenses 88,175 220,978 Other accrued expenses 52,602 151,332 Total $ 1,415,707 $ 874,264

Note 7 - Convertible Debt (Tabl

Note 7 - Convertible Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Convertible Debt [Table Text Block]	September 30, 2017 December 31, 2016 2016 Convertible notes $ — $ 1,880,000 Series B convertible notes 550,000 550,000 550,000 2,430,000 Less current portion (550,000 ) (1,880,000 ) Long-term debt, net of current portion $ — $ 550,000

Note 8 - Convertible Preferre25

Note 8 - Convertible Preferred Stock and Common Stock Warrants (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Warrants Outstanding to Acquire Shares of Common Stock [Table Text Block]	Outstanding Range of exercise price per share Common stock warrants issued prior to Merger 447,721 $20.00 - $750.00 Common stock warrants issued in Series A 13,555,887 $2.22 14,003,608

Note 9 - Stock-based Compensa26

Note 9 - Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Research and development $ 14,333 $ 174,932 $ 81,737 $ 601,260 General and administrative 278,168 215,425 892,213 520,730 Total stock-based compensation expense $ 292,501 $ 390,357 $ 973,950 $ 1,121,990
Share-based Compensation, Stock Options, Activity [Table Text Block]	Number of Options Weighted average exercise price per share Weighted average remaining contractual life (in years) Balance at January 1, 2017 2,207,409 $ 8.09 Granted 340,041 2.49 Expired (1,461 ) 15.00 Outstanding at September 30, 2017 2,545,989 $ 7.34 7.37 Exercisable at September 30, 2017 1,746,809 $ 8.51 6.62
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Expected term (in years) 6.03 Risk-free interest rate 2.0 % Expected volatility 114.9 % Dividend yield — %

Note 10 - Commitments and Con27

Note 10 - Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Rental Commitments 2017 $ 27,746 2018 112,354 2019 114,409 2020 116,464 2021 118,519 Thereafter 58,232 Total $ 547,724

Note 11 - Fair Value Measurem28

Note 11 - Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	September 30, 2017 (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 1,216,000 $ — $ — Certificate of deposit $ 10,020,164 Liabilities Common stock warrant liability $ — $ — $ 16,316,054 December 31, 2016 (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 1,552,852 $ — $ —
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Common Stock Warrant Liability Balance at December 31, 2016 $ — Issued in connection with the Series A convertible preferred stock 35,225,846 Change in fair value (18,909,792 ) Balance at September 30, 2017 $ 16,316,054
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	Stock price $ 1.66 Exercise price $ 2.22 Expected term (in years) 4.5 Risk-free interest rate 1.8 % Expected volatility 109.3 % Dividend yield —

Note 12 - Subsequent Events (Ta

Note 12 - Subsequent Events (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Balance Sheet Effects of Reclassification of Warrants from Liabilities to Stockholders' Equity [Table Text Block]	As of September 30, 2017 Actual Adjustments Pro-forma Total assets $ 28,327,243 $ — $ 28,327,243 Total liabilities 21,970,547 (16,316,054 ) (i) 5,654,493 Convertible preferred stock — — — Stockholders' equity Common stock 14,504 — 14,504 Additional paid-in-capital 69,686,744 13,153,524 (ii) 82,840,268 Accumulated deficit (63,344,552 ) 3,162,530 (iii) (60,182,022 ) Total stockholders' equity 6,356,696 16,316,054 22,672,750 Total liabilities, convertible preferred stock and stockholders' equity $ 28,327,243 $ — $ 28,327,243

Note 2 - Liquidity (Details Tex

Note 2 - Liquidity (Details Textual) - USD ($)	Mar. 31, 2017	Mar. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Jan. 07, 2018
Proceeds from Issuance of Convertible Preferred Stock, Net of Offering Costs			$ 22,129,774
Series A Preferred Stock [Member]
Proceeds from Issuance of Private Placement			$ 0
Series A Preferred Stock [Member] | Private Placement [Member]
Proceeds from Issuance of Private Placement		$ 25,000,000
Number of Convertible Preferred Stock Per Unit	1	1
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	1	1
Temporary Equity, Stock Issued During Period, New Issues		12,376,329
Proceeds from Issuance of Convertible Preferred Stock, Net of Offering Costs		$ 22,100,000
Payments of Stock Issuance Costs		$ 2,900,000			$ 2,900,000
Class of Warrant or Right, Granted During Period		1,179,558

Note 3 - Basis of Presentatio31

Note 3 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Jan. 01, 2017	Dec. 31, 2016	Sep. 30, 2016	Jan. 08, 2016
Previously Capitalized Offering Costs Expensed During the Period	$ 98,000
Goodwill	6,929,258	$ 6,929,258		$ 6,929,258
Indefinite-Lived Intangible Assets (Excluding Goodwill)	8,639,000	8,639,000		8,639,000
Impairment of Long-Lived Assets to be Disposed of	0	0
Accounting Standards Update 2016-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption			$ 1,000
Diffusion LLC [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill						$ 9,600,000
Goodwill						6,929,258
RES-529 [Member] | Diffusion LLC [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill						8,600,000
RES-440 [Member]
Indefinite-Lived Intangible Assets (Excluding Goodwill)					$ 0
RES-440 [Member] | Diffusion LLC [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill						$ 1,000,000
Fair Value, Inputs, Level 3 [Member] | Convertible Note, Series B [Member]
Convertible Debt, Fair Value Disclosures	$ 500,000	$ 500,000		600,000
Fair Value, Inputs, Level 3 [Member] | The 2016 Convertible Notes [Member]
Convertible Debt, Fair Value Disclosures				$ 2,000,000

Note 3 - Basis of Presentatio32

Note 3 - Basis of Presentation and Summary of Significant Accounting Policies - Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Basic net income (loss) per common share calculation:
Net income (loss)	$ 5,096,856	$ (5,436,553)	$ (3,154,181)	$ (15,465,912)
Accretion of Series A cumulative preferred dividends	(366,641)		(912,946)
Undistributed earnings to participating securities	(1,838,354)
Net income (loss) attributable to common stockholders	$ 2,891,861	$ (5,436,553)	$ (4,067,127)	$ (15,465,912)
Weighted average shares outstanding, basic (in shares)	13,937,869	10,333,898	11,709,128	10,198,491
Net income (loss) per share of common stock, basic (in dollars per share)	$ 0.21	$ (0.53)	$ (0.35)	$ (1.52)
Diluted net income (loss) per common share calculation:
Net income (loss) attributable to common stockholders	$ 2,891,861	$ (5,436,553)	$ (4,067,127)	$ (15,465,912)
Change in fair value of warrant liability			(18,909,792)
Interest on convertible debt	28,891
Diluted net loss	$ 2,920,752	$ (5,436,553)	$ (22,976,919)	$ (15,465,912)
Weighted average shares outstanding, basic (in shares)	13,937,869	10,333,898	11,709,128	10,198,491
Common stock equivalents arising from stock options (in shares)	20,608
Common stock equivalents arising from warrants (in shares)			816,579
Common stock equivalents arising from convertible debt (in shares)	756,376
Common stock equivalents (in shares)	14,714,853	10,333,898	12,525,707	10,198,491
Net income (loss) per share of common stock, diluted (in dollars per share)	$ 0.20	$ (0.53)	$ (1.83)	$ (1.52)

Note 3 - Basis of Presentatio33

Note 3 - Basis of Presentation and Summary of Significant Accounting Policies - Outstanding Dilutive Securities (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Anti-dilutive securities (in shares)	16,529,812	3,231,148	3,212,188	3,231,148
Convertible Debt Securities [Member]
Anti-dilutive securities (in shares)		749,280	213,879	749,280
Warrant [Member]
Anti-dilutive securities (in shares)	14,003,608	460,721	447,721	460,721
Employee Stock Option [Member]
Anti-dilutive securities (in shares)	2,521,605	2,010,409	2,545,989	2,010,409
Restricted Stock [Member]
Anti-dilutive securities (in shares)	4,599	10,738	4,599	10,738

Note 4 - Acquisition (Details T

Note 4 - Acquisition (Details Textual) - USD ($)	Jan. 08, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Stock Issued During Period, Value, Issued for Services				$ 50,000
Share-based Compensation				973,950	$ 1,121,990
Executive Officers [Member]
Severance Costs	$ 3,000,000	$ 0	$ 0	0
Diffusion LLC [Member] | Employee Stock Option [Member]
Share-based Compensation	$ 2,700,000	$ 0	$ 0	$ 0
Diffusion LLC [Member] | Financial Adviser [Member]
Stock Issued During Period, Shares, Issued for Services	46,000
Stock Issued During Period, Value, Issued for Services	$ 500,000
Diffusion LLC [Member] | Success Fee Agreement Costs [Member]
Payments for Other Fees	$ 1,100,000
Diffusion LLC [Member] | Acquisition-related Costs [Member]
Business Combination, Acquisition Related Costs					$ 1,600,000

Note 4 - Acquisition - Purchase

Note 4 - Acquisition - Purchase Price Consideration (Details) - RestorGenex [Member] - Diffusion LLC [Member]	Jan. 08, 2016USD ($)
Fair value of RestorGenex shares outstanding	$ 19,546,000
Estimated fair value of RestorGenex stock options outstanding	1,321,000
Estimated fair value of RestorGenex warrants outstanding	384,000
CVRs – RES-440 product candidate	10,000
Total purchase price	$ 21,261,000

Note 4 - Acquisition - Assets A

Note 4 - Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016	Jan. 08, 2016
Goodwill	$ 6,929,258	$ 6,929,258
Diffusion LLC [Member]
Cash and cash equivalents			$ 8,500,602
Prepaid expenses and other assets			195,200
Property and equipment			57,531
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill			9,600,000
Goodwill			6,929,258
Accrued liabilities			(377,432)
Deferred tax liability			(3,644,159)
Net assets acquired			$ 21,261,000

Note 4 - Acquisition - Pro Form

Note 4 - Acquisition - Pro Forma Financial Information (Details) - Diffusion LLC [Member]	9 Months Ended
	Sep. 30, 2016USD ($)$ / shares
Net revenues
Net loss	$ (13,900,691)
Basic and diluted loss per share (in dollars per share) | $ / shares	$ (1.36)

Note 5 - Prepaid Expenses, De38

Note 5 - Prepaid Expenses, Deposits and Other Current Assets - Summary of Prepaid Expenses, Deposits and Other Current Assets (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Prepaid research and development expense	$ 844,521	$ 12,725
Prepaid insurance expense	126,733	9,731
Prepaid other	33,107	28,388
Total	$ 1,004,361	$ 50,844

Note 6 - Other Accrued Expens39

Note 6 - Other Accrued Expenses and Liabilities - Summary of Accrued Expenses (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Accrued interest payable	$ 36,029	$ 29,359
Accrued Series A dividends	725,774
Accrued payroll and payroll related expenses	398,859	399,740
Accrued professional fees	114,268	72,855
Accrued clinical studies expenses	88,175	220,978
Other accrued expenses	52,602	151,332
Total	$ 1,415,707	$ 874,264

Note 7 - Convertible Debt (Deta

Note 7 - Convertible Debt (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Repayments of Convertible Debt		$ 1,880,000
Interest Paid, Net		112,800
Interest Payable	$ 36,000	$ 36,000
The 2016 Convertible Notes [Member]
Repayments of Convertible Debt	1,900,000
Interest Paid, Net	$ 100,000

Note 7 - Convertible Debt - Out

Note 7 - Convertible Debt - Outstanding Convertible Notes (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Total principal amount	$ 550,000	$ 2,430,000
Less current portion	(550,000)	(1,880,000)
Long-term debt, net of current portion		550,000
The 2016 Convertible Notes [Member]
Total principal amount		1,880,000
Convertible Note, Series B [Member]
Total principal amount	$ 550,000	$ 550,000

Note 8 - Convertible Preferre42

Note 8 - Convertible Preferred Stock and Common Stock Warrants (Details Textual)	Mar. 31, 2017$ / sharesshares	Mar. 31, 2017USD ($)$ / sharesshares	Sep. 30, 2017USD ($)$ / itemshares	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)$ / shares$ / itemshares	Sep. 30, 2016USD ($)	Jan. 07, 2018USD ($)	Mar. 14, 2017$ / item
Proceeds from Issuance of Convertible Preferred Stock, Net of Offering Costs					$ 22,129,774
Warrant Expense					10,225,846
Dividends					912,946
Stock Reclassified Upon Conversion of Preferred Stock					$ 187,172
Make-Whole Provision Conversion Price, Percentage					105.00%
Fair Value Adjustment of Warrants			$ (8,441,616)		$ (18,909,792)
Maximum [Member]
Convertible Preferred Stock, Conversion Price | shares			2.02		2.02
Minimum [Member]
Financing Trigger from Issuance of Common Stock			$ 10,000,000		$ 10,000,000
Convertible Preferred Stock, Make-Whole Provision, Proceeds from Issue of Common Stock					10,000,000
Warrant [Member]
Warrant Expense			$ 5,800,000		$ 5,800,000
Class of Warrant or Rights, Expired | shares					13,000
Private Placement [Member]
Convertible Preferred Stock, Votes Per Share | $ / item			0.50627		0.50627			0.84874
Private Placement [Member] | Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | shares	1	1
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 2.22	$ 2.22
Class of Warrant or Right, Term	5 years
Warrant Expense					$ 10,200,000
Series A Preferred Stock [Member]
Preferred Stock, Shares Authorized | shares			13,750,000		13,750,000
Proceeds from Issuance of Private Placement					$ 0
Dividends					$ 912,946
Conversion of Stock, Shares Converted | shares			2,125,306		4,052,297
Stock Reclassified Upon Conversion of Preferred Stock			$ 100,000		$ 200,000
Stock Reclassified Upon Conversion of Preferred Stock, Shares | shares			62,701		88,436
Fair Value Adjustment of Warrants			$ 8,400,000		$ 8,400,000
Series A Preferred Stock [Member] | Maximum [Member]
Convertible Preferred Stock, Make-Whole Provision, Minimum Share Price | $ / shares					$ 8
Series A Preferred Stock [Member] | Private Placement [Member]
Proceeds from Issuance of Private Placement		$ 25,000,000
Number of Convertible Preferred Stock Per Unit | shares	1	1
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | shares	1	1
Preferred Stock, Dividend Rate, Percentage	8.00%
Number of Common Stock Per Unit | shares	1
Convertible Preferred Stock, Conversion Price | shares	2.02	2.02
Temporary Equity, Stock Issued During Period, New Issues | shares		12,376,329
Proceeds from Issuance of Convertible Preferred Stock, Net of Offering Costs		$ 22,100,000
Payments of Stock Issuance Costs		$ 2,900,000					$ 2,900,000
Class of Warrant or Right, Granted During Period | shares		1,179,558
Dividends			$ 400,000		$ 900,000
Series B Preferred Stock [Member] | Private Placement [Member] | Placement Agent [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 2.22	$ 2.22
Class of Warrant or Right, Term	5 years
Class of Warrant or Right, Granted During Period | shares		1,179,558

Note 8 - Convertible Preferre43

Note 8 - Convertible Preferred Stock and Common Stock Warrants - Warrants Outstanding to Acquire Shares of its Common Stock (Details)	Sep. 30, 2017$ / sharesshares
Common stock warrants, outstanding (in shares) | shares	14,003,608
Convertible Preferred Stock Issued Prior to Merger [Member]
Common stock warrants, outstanding (in shares) | shares	447,721
Convertible Preferred Stock Issued Prior to Merger [Member] | Minimum [Member]
Range of exercise price (in dollars per share) | $ / shares	$ 20
Convertible Preferred Stock Issued Prior to Merger [Member] | Maximum [Member]
Range of exercise price (in dollars per share) | $ / shares	$ 750
Series A Convertible Preferred Stock [Member]
Common stock warrants, outstanding (in shares) | shares	13,555,887
Range of exercise price (in dollars per share) | $ / shares	$ 2.22

Note 9 - Stock-based Compensa44

Note 9 - Stock-based Compensation (Details Textual) - USD ($)	Jan. 01, 2017	Jul. 21, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					340,041
Allocated Share-based Compensation Expense			$ 292,501	$ 390,357	$ 973,950	$ 1,121,990
Non-employee Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					9,394
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value			$ 7,000	200,000	$ 83,000	700,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares			18,572		18,572
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options			$ 26,000		$ 26,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition					1 year 233 days
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					330,647
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options			2,800,000		$ 2,800,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition					5 years 120 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value					$ 2.12
Allocated Share-based Compensation Expense			$ 300,000	$ 100,000	$ 900,000	$ 400,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			0	0	0	0
Restricted Stock [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition					1 year
Allocated Share-based Compensation Expense			$ 3,000	$ 3,000	$ 9,000	$ 9,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			4,599		4,599
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			1,533	1,534	4,599	4,603
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options			$ 9,000		$ 9,000
Restorgenex Corporation 2015 Equity Incentive Plan [Member]
Percentage of Total Shares Eligible for Plan Reserve, On an Annual Basis		4.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	413,825
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			114,291		114,291

Note 9 - Stock-based Compensa45

Note 9 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Stock-based compensation expense	$ 292,501	$ 390,357	$ 973,950	$ 1,121,990
Research and Development Expense [Member]
Stock-based compensation expense	14,333	174,932	81,737	601,260
General and Administrative Expense [Member]
Stock-based compensation expense	$ 278,168	$ 215,425	$ 892,213	$ 520,730

Note 9 - Stock-based Compensa46

Note 9 - Stock-based Compensation - Stock Option Activity (Details)	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Balance (in shares) | shares	2,207,409
Balance (in dollars per share) | $ / shares	$ 8.09
Granted (in shares) | shares	340,041
Granted (in dollars per share) | $ / shares	$ 2.49
Expired (in shares) | shares	(1,461)
Expired (in dollars per share) | $ / shares	$ 15
Options outstanding (in shares) | shares	2,545,989
Options outstanding, weighted-average per share exercise price (in dollars per share) | $ / shares	$ 7.34
Options outstanding, weighted-average remaining contractual life (Year)	7 years 135 days
Exercisable (in shares) | shares	1,746,809
Exercisable (in dollars per share) | $ / shares	$ 8.51
Exercisable (Year)	6 years 226 days

Note 9 - Stock-based Compensa47

Note 9 - Stock-based Compensation - Fair Value Assumptions (Details)	9 Months Ended
	Sep. 30, 2017
Expected term (Year)	6 years 10 days
Risk-free interest rate	2.00%
Expected volatility	114.90%
Dividend yield

Note 10 - Commitments and Con48

Note 10 - Commitments and Contingencies (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Research and Development Expense	$ 1,759,305	$ 1,941,743	$ 3,946,420	$ 5,739,456
Prepaid Research and Development Expense	844,521		844,521		$ 12,725
Arrangement With Clinical Research Organization [Member]
Research and Development Expense	600,000
Prepaid Research and Development Expense	1,000,000		1,000,000
Charlottesville, Virginia [Member] | Leasehold Improvements [Member]
Property, Plant and Equipment, Additions			400,000
Charlottesville, Virginia [Member] | Building [Member]
Operating Leases, Rent Expense, Net	$ 28,000	$ 34,000	$ 80,000	$ 115,000

Note 10 - Commitments and Con49

Note 10 - Commitments and Contingencies - Total Future Operating Lease Obligations (Details)	Sep. 30, 2017USD ($)
2,017	$ 27,746
2,018	112,354
2,019	114,409
2,020	116,464
2,021	118,519
Thereafter	58,232
Total	$ 547,724

Note 11 - Fair Value Measurem50

Note 11 - Fair Value Measurements - Fair Value on a Recurring Basis (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Common stock warrant liability	$ 16,316,054
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Cash and cash equivalents	1,216,000	$ 1,552,852
Certificate of deposit	10,020,164
Common stock warrant liability
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Certificate of deposit
Common stock warrant liability
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Certificate of deposit
Common stock warrant liability	$ 16,316,054

Note 11 - Fair Value Measurem51

Note 11 - Fair Value Measurements - Reconciliation of Common Stock Warrant Liability (Details) - Contingent Consideration [Member]	9 Months Ended
	Sep. 30, 2017USD ($)
Balance
Issued in connection with the Series A convertible preferred stock	35,225,846
Change in fair value	(18,909,792)
Balance	$ 16,316,054

Note 11 - Fair Value Measurem52

Note 11 - Fair Value Measurements - Black -Scholes Model and Assumptions (Details)	9 Months Ended
	Sep. 30, 2017$ / shares
Stock price (in dollars per share)	$ 1.66
Exercise price (in dollars per share)	$ 2.22
Expected term (Year)	4 years 182 days
Risk-free interest rate	1.80%
Expected volatility	109.30%
Dividend yield (in dollars per share)

Note 12 - Subsequent Events (De

Note 12 - Subsequent Events (Details Textual) - Subsequent Event [Member] - Warrants Attached to Series A Convertible Preferred Stock [Member] $ in Millions	Nov. 01, 2017USD ($)
Amount of Warrant Liability Removed from Total Liabilities	$ 16.3
Fair Value of Warrants Reclassified to Additional Paid in Capital During the Period	13.2
Adjustment of Accumulated Deficit Balance for the Change in Fair Value of Warrants	$ 3.2

Note 12 - Subsequent Events - B

Note 12 - Subsequent Events - Balance Sheet Effects of Warrants Reclassified from Liabilities to Stockholders' Equity (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Total assets	$ 28,327,243	$ 17,484,384
Total liabilities	21,970,547	8,299,700
Convertible preferred stock, $0.001 par value: Series A - 13,750,000 shares authorized, 12,376,329 and 8,324,032 shares issued and outstanding, respectively at September 30, 2017; No shares authorized, issued or outstanding at December 31, 2016 (liquidation value of $16,814,360 at September 30, 2017)	0	0
Stockholders' equity
Common stock	14,504	10,346
Additional paid-in capital	69,686,744	69,363,575
Accumulated deficit	(63,344,552)	(60,189,237)
Total stockholders' equity	6,356,696	9,184,684
Total liabilities, convertible preferred stock and stockholders' equity	28,327,243	$ 17,484,384
Adjustments for Pro Forma [Member]
Total assets
Total liabilities	(16,316,054)
Convertible preferred stock, $0.001 par value: Series A - 13,750,000 shares authorized, 12,376,329 and 8,324,032 shares issued and outstanding, respectively at September 30, 2017; No shares authorized, issued or outstanding at December 31, 2016 (liquidation value of $16,814,360 at September 30, 2017)
Stockholders' equity
Common stock
Additional paid-in capital	13,153,524
Accumulated deficit	3,162,530
Total stockholders' equity	16,316,054
Total liabilities, convertible preferred stock and stockholders' equity
Pro Forma [Member]
Total assets	28,327,243
Total liabilities	5,654,493
Convertible preferred stock, $0.001 par value: Series A - 13,750,000 shares authorized, 12,376,329 and 8,324,032 shares issued and outstanding, respectively at September 30, 2017; No shares authorized, issued or outstanding at December 31, 2016 (liquidation value of $16,814,360 at September 30, 2017)
Stockholders' equity
Common stock	14,504
Additional paid-in capital	82,840,268
Accumulated deficit	(60,182,022)
Total stockholders' equity	22,672,750
Total liabilities, convertible preferred stock and stockholders' equity	$ 28,327,243